Neighborhood Stabilization
February 16th, 2009 Categories: 2009 Stimulus, Real Estate News
How Does the Neighborhood Stabilization
Work For Salt Lake County Foreclosures
Neighborhood Stabilization -the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created to provide grants to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures.
The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties.
After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income.
I don’t think the above formula will solve anything, the projects that have been abandoned in Salt Lake County are a higher price range as I would suspect in most places. To take a vacant project of McMansions and then try to move people in that are at or just above the median income doesn’t make sense. The median income for Salt Lake County is $65,000, times that by 120% = $78,000 if you were to multiply $78,000 by 3.5 you would get a mortgage affordability of $273,000.
Again we don’t have too many of these projects here in Salt Lake, however there are areas that have many vacant projects.
By leveraging their expertise in partnership with others from both the public and private sector, Realtors® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.
If you have any questions feel free to contact me 801-694-4762 or Rob@Aubrey.net
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